Inverted Yield Curve
Now it’s inverted. See the Java applet here, and my earlier post on this topic here.
It actually has inverted briefly a few times in the last few months, but if it stays inverted for a several months stretch, you may want to switch investment strategies to focus on…canned goods, say.
And as Chris Gibson points out, we’ll keep our eye on data switch sales (still healthy at the moment!)
Bill Standley wrote:
You’re not the only one who noticed.
Did you see this yesterday on LRC?
“If the Federal Reserve System would stick to its guns and refuse to inflate in the next recession, the economy could adjust on a permanent basis. I don’t think this is likely. The FED will inflate once again. This is what central banks do.
“For the moment, the FED is not inflating. The yield curve is inverted. The recession is in the pipeline. You can prepare for it now or deal with it later.”
Posted 13 Dec 2006 at 9:32 am ¶